Acebedo Optical Company, Inc. v. Court of Appeals 3.

Mayor has no authority to impose special conditions on business

(G.R. No. 100152, 31 March 2000) permits
4. City Legal Officer has no authority to conduct investigation as the
Petitioner(s): Acebedo Optical Company, Inc.
matter falls within the exclusive jurisdiction of the Professional
Respondent(s): Court of Appeals, Hon. Mamindiara Mangotara (RTC Judge), Samahan ng
Optometrist sa Pilipinas (SOPI), Legal Officer Leo Cahanap, and Mayor Camilo Cabili Regulation Commission (PRC) and the Board of Optometry

RTC dismissed the petition for failure to exhaust administrative remedies,

ANTECEDENT FACTS and the Court of Appeals (CA) similarly dismissed the petition for lack of
merit.
Petitioner Acebedo applied for a business permit with the Mayor’s Office
of Iligan, and the same was approved, subject to the following conditions:
ISSUE(S)
1. Acebedo cannot put up an optical clinic but only a commercial
store, because it is a corporation 1. Did Respondent RTC err in holding that the special conditions are
2. Acebedo cannot examine or prescribe reading or optical glasses binding on Acebedo upon their acceptance of the business
for patients permit?
3. Acebedo cannot sell reading or optical glasses without a 2. Did Respondent CA err in holding that the contract between
prescription from an independent optometrist Acebedo and the City of Iligan was entered into by the latter in
4. Acebedo cannot advertise reading or optical glasses, but can the performance of its proprietary functions?
advertise Ray-Ban and other similar glasses and frames
5. Acebedo is allowed to grind lenses but only with prescription from
OPINION(S) OF THE COURT and RULING
an independent optometrist
Although, as the Respondents assert, that Acebedo agreed to such
Respondent Samahan ng Optometrist sa Pilipinas, Inc. (SOPI) filed a
special conditions stipulated in the business contract, this does not
complaint against Acebedo for violation of the conditions of their business
disqualify the Petitioner from challenging the imposition thereof. Mayor
permit
Cabili acted beyond the ambit of authority in issuing such business permit
o Mayor Cabili directed Legal Officer Cahanap to conduct an with special conditions.
investigation on the matter
A license or a permit to do business is not a contract between the
o Mayor Cabili sent a notice regarding the cancellation of their
sovereignty and the licensee. A license is in the nature of a special
business permit, giving them 3 months to wind up their affairs
privilege or a permission or authority to do what is within its terms. It is not
Acebedo filed a petition against the Respondents with the RTC of Iligan, permanent or absolute.
alleging the following:
Mayor Cabili acted beyond the authority vested in him, therefore he is
1. Denied due process, because they were not given an opportunity ordered by the Court to reissue Acebedo’s business permit.
to present evidence during the investigation
2. Denied equal protection of laws, because the limitations imposed
on the business permit were not imposed on other similar
businesses

Reviewer by Alecs Laohoo

DOCTRINES, CONCEPTS and LAWS

Police Power

o Power to prescribe regulations to promote the health, morals,

peace, education, good order or safety and general welfare of the
people
o Delegated by the State, through the legislative, to local
government units, as agencies of the State, in order to effectively
accomplish and carry out the declared objects of their creation
o Section 16 of the Local Government Code: “Every local
government unit shall exercise the powers expressly granted,
those necessarily implied therefrom, as well as powers
necessary, appropriate, or incidental for its efficient and effective
governance.”

Powers of the City Mayor

o Business permits are issued by the local government for the

purpose of regulating the conduct of business
o The power to issue licenses and permits necessarily includes the
corollary power to revoke, withdraw, or cancel the same
o Section 171 of the Local Government Code: “The City
Mayor shall… Grant or refuse to grant, pursuant to law,
city licenses or permits, and revoke the same for violation
of law or ordinance or the conditions upon which they are
granted”
o However, the power to grant or issue licenses or
business permits must always be exercised in
accordance with law, with utmost observance of the
rights of all concerned to due process and equal
protection of the law

Reviewer by Alecs Laohoo